Living Wage

The Real Living Wage enables a person to have a minimum acceptable standard of living with less reliance on benefits, and is calculated annually according to the cost of living in the UK.The Real Living Wage is currently £8.75 per hour.

This year’s Living Wage Week will be celebrated between Sunday 4 and Saturday 10 November. During the week the new real Living Wage rates for London and the UK will be announced. We’ll publish details of what’s planned in Cambridge nearer the time. Check the Living Wage Foundation website to find out what’s planned elsewhere.

The Real Living Wage rate applied to everyone over age 18, and is £8.75 for the UK and the London rate is £10.20. By comparison, the national living wage is calculated as a percentage of median income so is not as generous, and does not reflect living costs. For over 25 year-olds the national living wage rate is £7.50.

Cambridge City Council pays the Living Wage to all directly employed staff, as well as to agency workers. We also commit to paying the Living Wage to all contracted staff engaged through our procurement processes. In November 2014 the city council received official accreditation from the Living Wage Foundation.

We are now working to encourage and support other businesses in Cambridge to become accredited Living Wage employers.

The number of accredited Living Wage employers in Cambridge has increased to 57.

Benefits of the Living Wage

We believe that the Living Wage is:

Good for business

Reduction in staff turnover and sickness rates

Less absenteeism

Improved staff morale and productivity

Better retention of staff

Recruitment of committed staff

Reputation as an ethical employer

Good for the worker

Workers are able to provide properly for themselves and their family

They are less reliant on benefits

They don’t have to work excessive hours

They have more time for their family

Good for Cambridge

More money is spent locally

Cambridge has a high-quality, better paid workforce

Get help with becoming a Living Wage employer

Are you based in Cambridge? Are you interested in becoming a Living Wage employer?

If you've decided that you want to apply for accreditation, or you're just thinking about whether it might be good for you, contact us and we will work with you to take you through the process.

Our Equality and Anti-Poverty Officer (emaillivingwage@cambridge.gov.uk) can put you in touch with the Living Wage Foundation and will support you in taking the steps towards accreditation.

The process is simple, as accredited Cambridge employers can testify.

News

The punting company Rutherford’s is the latest employer in Cambridge to become Living Wage accredited.

National Minimum Wage

A new National Minimum Wage rate of £7.50 per hour applies for workers aged over 25. The government has called this a "national living wage" but it is quite separate from the Living Wage of £8.75 per hour accredited by the Living Wage Foundation. £7.50 is the legal minimum for over 25s, but the £8.75 Living Wage is calculated according to the cost of living - what people need for an acceptable, basic standard of living. It's a rate which employers choose to pay voluntarily to go beyond the statutory minimum.

Guidance for employees

Do you have questions on how your change in income will impact on your benefits? Do you want support in budgeting? Do you have problems with your pay? If you would like help with any of these questions, contact Cambridge & District Citizens Advice Bureau. Phone 03448 487 979 between 2 and 4pm Monday to Friday.